Environmental Finance: Managing Risks and Improving Ecosystem Services in Murray Darling Basin

Running head: ENVIRONMENTAL FINANCE
Environmental finance
Name of the Student
Name of the University
Author Note

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ENVIRONMENTAL FINANCE
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
List of three of key ecosystem services provided by Murray Darling Basin:............................3
Ecosystem services in the absence of regulation:......................................................................6
Three examples of market based instruments intended to improve the provisions:..................6
Quantity based instruments:.......................................................................................................6
Potential effects of climatic change on the ecosystem services of Murray-Darling Basin
Authority:...................................................................................................................................8
Managing environmental risks using financial instruments:.....................................................9
Conclusion:..............................................................................................................................10
Reference lists:.........................................................................................................................11

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ENVIRONMENTAL FINANCE
Introduction:
The assignment is prepared for addressing various questions in relation to the Murray-
Darling Basin Authority. This is related to ecosystem services provided by the basin along
with emphasizing the reason why it is an area of concern for government. Different market
based instruments have been identified for improving ecosystem service provisions and how
such instruments helps in determining market price of ecosystem services. Furthermore,
considerable attention has been given on the potential effects on the identified ecosystem
service due to climatic change. Moreover, management of environmental risks associated
with has been explained in terms of implementation of financial instruments by government
as strategy of managing such risks.
Discussion:
List of three of key ecosystem services provided by Murray Darling Basin:
The key ecosystem services that Murray Darling Basin provides is discussed based on
their categorization. Ecosystem services are categorized into four aspects that comprise of
provisioning, regulating, cultural and supporting.
Supporting Provisioning Regulating Cultural
Water cycling- A large
area of irrigation is
supported by water
resources of Murray
darling basin and this is
regarded as key factor
in the ongoing
prosperity and social
Fresh water
A series of water
quality target is carried
out by Basin plan that
provides user with the
assurance it is safe for
agricultural, drinking,
environmental and
Water Regulation
The water resources of
basin are managed by
Water Act, 2007 that
has the objective of
improving the security
of water for all the
basin water resources
Social relations
The areas of social
relations that are
assessed in the
ecosystem service
benefits include
description of
relationship between

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ENVIRONMENTAL FINANCE
fabric of region. The
water management of
basin is a response to
environmental impacts
of level of water use
and recent climatic
change (Criscuolo and
Menon 2015.).
recreational purpose.
The flow of water is
managed by adopting
several measures such
as maintaining
dissolved oxygen at
target value
(Anderson 2016).
users. This leads to
optimization of social,
economic and
environmental
resources by managing
and promoting the use
of water resource of
basin.
economic and social
outcome provided.
Social relations have
improved due to
improvement made in
environmental
conditions of wetland
and basin rivers
(Ferreira 2016).
Soil formation- The
wetland in the Murray
darling basin was
affected by the acid
sulfate soils and it is
required to manage the
there is unlikely that
the risk posed by acid
sulfate soils will be
managed. A direct
connection was
provided between
Murray and salt store
in the soil by the new
course carved by river.
The rainfall leaking
directly through soil to
the groundwater supply
Food
Many opportunities are
provided by the history
and diverse geography
for tourisms that
includes enjoying wine
and food in visiting
historic townships and
fertile valleys.
Climate regulation
The climate of Murray
darling basin has
highly variable climate.
One of the major
challenges faced by
water resource
managers and river
operators and other
community is to plan
for this dry and wet
climate of the basin.
Cultural diversity
In the Australian
cultural heritage, the
basin has a crucial
place. Collective
identity is underpinned
by many of the iconic
heritage features of
Basin. Cultural
practices are supported
by conserve ecosystem
and protection of
aboriginal people in
their natural state.